Glencore seeking more capacity at Russian port

MOSCOW, RUSSIA — Glencore Plc is attempting to buy the right to use more grain export capacity at Russia’s Port of Taman from Ukraine’s Kernel Holding SA, according to a July 23 report by Bloomberg.

The potential deal could nearly double Glencore’s grain export capacity at the port, the report said.

The two companies currently each own 50% of the grain terminal complex at Taman and have the right to split its capacity evenly, according to Bloomberg.

Switzerland-based Glencore ranked as Russia’s second biggest grain exporter in 2017-18, according to preliminary data compiled by grain carrier Rusagrotrans.

Russia, as well as the Black Sea region, has become a bigger factor in grain exports in recent years, and the trade conflict between the United States and China could further boost exports from that region.

Black Sea region’s share of the international wheat market climbed 37% in 2017-18, according to the International Grains Council, ranking first ahead of the United States and Canada.

Even soybeans, which are a secondary crop in that region, have seen increased exports over the past year. Russia recently reported a record 850,000 tonnes of soybean exports to China from July 2017 to May 2018, more than double the total during that same period in 2016-17.

Last week, Ukraine’s State Food and Grain Corporation announced that it has shipped more than 1 million tonnes of grains to China in 2017-18, more than double the amount of the previous year.